General govʼt January surplus confirmed

MTI – Econews

Thursday, February 21, 2019, 13:30

Hungaryʼs cash flow-based general government, excluding local councils, ran a HUF 244.5 billion surplus at the end of January, the Ministry of Finance said in a detailed reading of data on Thursday, confirming a preliminary flash report on February 8, state news agency MTI reported.

Illustration: Shutterstock.com

The central budget surplus reached HUF 186.5 bln. Separate state funds were HUF 23 bln in the black, while the social insurance funds had a HUF 35 bln surplus.

The ministry said that tax revenue was HUF 200 bln higher in January than in the same month a year earlier, and "significant" transfers of European Union funding also arrived from Brussels.

Revenue from VAT was up HUF 153.9 bln, revenue from personal income tax rose HUF 23.9 bln, revenue from pension and healthcare contributions as well as payroll tax climbed HUF 23 bln, and revenue from excise tax increased HUF 17.1 bln, it said.

Transfers from Brussels came to HUF 222.9 bln, and payouts on EU-supported projects reached HUF 89.3 bln, it added, noting that the general government would have run a surplus even without the EU transfers.

Among the biggest expenditures in January were those funded mainly from central budget funds, such as the Modern Cities Program and upgrades of the national rail network, the ministry said.

The government targets a cash flow-based deficit of HUF 998.4 bln for the full year. Relative to GDP, the deficit target stands at 1.8%, calculated according to the European Unionʼs accrual-based methodology.

Related articles

Budapestʼs Keleti (Eastern) railway station will reopen after a two-week closure for maintenance on Monday, May 27, Róbert Homolya, president and CEO of state-owned railway company MÁV, said on Thursday, state news wire MTI reported.

Elections to the European Parliament (EP) will be held in Hungary this Sunday, and polls suggest that the governing Fidesz party will once again gain the upper hand against a fragmented opposition, achieving more than half of the 21 seats at stake.

The shock-absorbing capacity of Hungarian banks “continues to be robust,” but sustainable profitability is low, the National Bank of Hungary (MNB) says in its biannual Financial Stability Report released Thursday, identifying the still high ratio of variable-rate loans and overheating on the Budapest housing market among risks.

Spanish startup incubator Demium Startups will open an office in Budapest this June, offering new opportunities to talented Hungarian entrepreneurs, aiming to build up startups from their foundation by focusing on both individuals and teams.

After-tax profit of Zwack Unicum, Hungaryʼs best-known spirits maker, rose 20% year-on-year to HUF 2.6 billion in the firmʼs business year ending March 31, as buyers stocked up before tax changes, shows an earnings report released Wednesday.

Since April 6, the Museum of Fine Arts has been running an exhibition showcasing a selection of drawings by Michelangelo and his most talented contemporaries, the museumʼs official website mfab.hu reported.

The organizers of the 2019 Emerging Europe Awards have announced this yearʼs nominees, with six nominees from Hungary. The awards will be presented after a jury picks the winners in London on June 28, at Emerging Europeʼs Leadersʼ Meeting and Awards ceremony.

Hungary’s general government, excluding local councils, ran a HUF 39 billion deficit at the end of April, reaching just 3.9% of the HUF 998.4 bln full-year target, the Ministry of Finance confirmed Tuesday in a detailed reading of data published on government website kormany.hu.

Hungarian restrictions on farmland investors from other European Union nations violate basic rights enshrined in EU law, the Court of Justice of the European Union (CJEU) has ruled, as reported by news wire Bloomberg. The judgment cannot be appealed.